Question

question
in 1935, economics nobel prize winner john hicks made a comment about the allocative inefficiency of monopolies. what did he mean when he said, \the best of all monopoly profits is a quiet life\?
select the correct answer below:
monopolies donate their profits to society trying to please their customers. the problem of inefficiency for monopolies often runs even deeper and involves becoming efficient over a longer period of time.
monopolies may bank their profits and slack off on trying to please their customers. the problem of inefficiency for monopolies often runs even deeper and involves inefficiency over a longer period of time.
monopolies may bank their profits and provide their customer new innovations. the problem of inefficiency for monopolies often means new technology and a fast paced changing world.
monopolies may split their profits with their customers. the problem of inefficiency for monopolies often involves bureaucracy and wastes time.

Explanation:

John Hicks' statement implies that monopolies, due to lack of competition, can simply bank their profits and not put in much effort to innovate or please customers. They can enjoy a "quiet life" as they don't face the pressure to be efficient like firms in competitive markets.

Answer:

Monopolies may bank their profits and slack off on trying to please their customers. The problem of inefficiency for monopolies often runs even deeper and involves inefficiency over a longer period of time.